Financial Institution Fraud - Criminal Investigation (CI)
Criminal Investigation’s (CI) Financial Institution Fraud Program, addresses criminal violations involving fraud against banks, savings and loan associations, credit unions, check cashers, and stockbrokers. Criminal Investigation is a major contributor in the effort to combat financial institution fraud, and the United States Attorneys’ recognize CI’s financial investigative expertise in this complex area.
The ability to bring income tax and money laundering charges augments prosecutor’s effectiveness in combating fraud committed against financial institutions, whether the violators work within or outside of the financial institution.
The use of Sight Drafts, also known as Bills of Exchange, to defraud financial institutions has proliferated with the upsurge in use by radical militia groups. These fictitious financial instruments resemble bank cashier’s checks and have been issued in amounts exceeding $10 billion. Criminal Investigation has taken an aggressive role in these investigations by using the charge of Title 18 USC Section 514 (Fictitious Obligations). This statute was enacted to prosecute individuals and groups who use sham instruments to defraud financial institutions as well as the IRS.
Currency Transaction Reports and Suspicious Activity Reports continue to be an effective source of information regarding financial institution fraud. Criminal Investigation follows up on Currency Transaction Reports and/or Suspicious Activity Reports with the reporting financial institution. Direct contact is made with the financial institution, enhancing the constructive and cooperative relationship CI has established with the banking industry.
Financial Institution Fraud enforcement statistics on investigations initiated, prosecutions recommended, indictments, sentenced investigations, and months to serve in prison.
Examples are written from public record documents on file in the court records in the judicial district in which the cases were prosecuted.